Theory as model building A firm's supply depends on the prices of the good and of the materials used to make it: Qs = −6+0.8P - 2Pm (d) The price of materials is Pm = 7. Find the optimal quantities to produce if the price of the good is P = 50 and P = 60. Graph the supply curve. (e) Now the price of materials changes to Pm,1 = 12. Find the optimal quantities to produce if the price of the good is P = 50 and P = 60. Show the shift of the supply curve on a graph.

Theory as model building A firm's supply depends on the prices of the good and of the materials used to make it: Qs = −6+0.8P - 2Pm (d) The price of materials is Pm = 7. Find the optimal quantities to produce if the price of the good is P = 50 and P = 60. Graph the supply curve. (e) Now the price of materials changes to Pm,1 = 12. Find the optimal quantities to produce if the price of the good is P = 50 and P = 60. Show the shift of the supply curve on a graph.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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